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Economy
- Relationship between GVA and GDP (basic prices/ market prices/ factor
- costs)Competitive devaluation- effects
- PSU mahanavratnas and navratnas
- Power Sector in IndiaBanking licenses
- http://www.quora.com/Should-India-push-for-Rupee-internationalization
- Industrial Relations BillMarginal Oil Field Policy
- Bank Boards Bureau
- CDMA band spectrum meaningThe government's move to increase import duty on steel may improve the bottomline of domestic steel manufacturers, but is likely to hit downstream
- manufacturersAtkinson's inequality measure
- ANGUS DEATON- for optional
- Why has poverty estimate by world bank dipped to 12%? http://indianexpress.com/article/explained/meaning-urp-mrp-mmrp/
- Inequality in India- prepare short notes from Jayati Ghosh's paperIndia has not achieved the MDG targets of universal primary school enrolment, women empowerment, reducing child and infant mortality, and
- improving sanitation to end open defecationGovind rao decentralisation article Nov. 02
- India is number 1 in FDI
- It seems India is a victim of its own size. It imagines that the vastness of its internal market is sufficient to allow for the expansion of a manufacturing sector. It is extraordinary that this delusion has persisted so long, in spite of
- 70 years of our economic history serving as evidence to the contrary The system of conclusive land titles is based on four basic principles : One, a single agency to handle land records (including the maintenance and updating of the textual records, maps, survey and settlement operations, registration of immovable property mutations, etc); second, the “mirror” principle, which states that, at any given moment, the land records mirror the ground record of title is a true depiction of the ownership status, reality; three, the “curtain” principle, which refers to the fact that the mutation is automatic following registration, there is no need of probing into past title transactions, and title is a conclusive proof of ownership; and four, insurance, which refers to the fact that the title is guaranteed for its title correctness and the party concerned is indemnified against any loss arising because of inaccuracy in this regard. At the moment, land records in India don’t reflect any of these principles
- There are still some segments of the industry which are subject to a number of controls of the pre-1991 type. A typical example is the sugar industry. Molasses are subject to a type of control which results in a subsidisation of the liquor industry. The basic principle underlying liberalisation is of the need
to create competitive markets with minimal barriers to entry and should be extended to all sectors. Pricing of natural resources has become an issue. In the absence of competition, transparent mechanisms for fixing the prices must be followed which will be fair to both the producers and the end users
- The annual rate of growth of per capita income in the period between 1993- 94 and 2004-05 was 4.3 per cent and the growth rate for the period between 2004-05 and 2011-12 was 6.7 per cent. The annual decline in the poverty ratio in percentage points (according to the Suresh Tendulkar committee’s methodology) was 0.74 in the first period and 2.18 in the second period. In fact, the finding that the decline in poverty was much faster in the latter period is valid irrespective of where the poverty line is drawn. Between 2009- 10 and 2011-12, according to the Tendulkar Committee’s methodology, the reduction in poverty ratio was 7.9 points. According to the Rangarajan Committee’s methodology, it was 8.7 points
- Learn GDP growth rates: In the post reform period beginning 1992-93, the economy has grown at an average rate of 6.8 per cent. In the more recent period, the growth rate has been even higher. Over the decade beginning 2004-05, the average annual growth rate has been 7.6 per cent. Between 2005-06 and 2010-11, the growth rate was 8.7 per cent. Contrast this with the annual growth rate of 3.5 per cent between 1952 and 1980
- Urea is sold at one-fourth the price of table salt today. of cheap urea destroys the soil and leads to more plant vegetative growth. An But the excessive use explosion of insect and pest populations is then inevitable. Indiscriminate, unregulated sale of pesticides and spurious products is leading to an ecological disaster
- Food processing, essential for agricultural prosperity, never bloomed — for instance, Punjab exports wheat but imports wheat flour
- Capital goods policy: http://mybs.in/2S1MOl 4
- Jayanta Roy: Diversify services to boost exports:http://mybs.in/2S1LT8t
- OECD BEPS
- What is being crafted as a key intervention appears essentially to be another round of financial repackaging. The discoms' debts are proposed to be transferred to the state governments concerned, which will issue bonds against these. The Union Cabinet is shortly expected to endorse this. If the state defaults on servicing these bonds, the Centre would step in and commandeer parts of financial grants/devolutions to the state. It is hoped that this additional pressure on the finances of the states will force them to implement tough distribution sector reforms
More importantly, RBI watchers indicate the central bank can supersede the board if the top management fails to deliver
- Subsidies account for 1.6% of the total GDP, as against 2.5% in 2012
- A key TPP agenda is to counter the might of China in the Pacific region; TPP countries account for 40℅ of total world trade
- World bank has revised the poverty line from $1.25 to $1.
- India's natural gas pricing policy
- Integrated Power Development Scheme
- Challenges to payment banks and SFBs might come also from PMJDY and exisiting priority sector lending norms for existing banks
- 2015 NPT RevCon
- In 2014-15, subsidies accounted for 2.1% of the GDP, 2.64 times the entire capex of the central government, and accounted for about 23% of the central government's revenue receipts
- Many of the new small banks will be run by MFIs, which is good because MFIs have deep penetration and know their customers (Subir gokarn, business standard, Sep 23)
- Key features: National Skills Policy ---
- India now ranks 130 out of 189 countries in the ease of doing business 2016, ‘starting a business’ and ‘getting electricity,’ pushed India up the ladder according to a World Bank report. The improvement in two indicators,
- Data shows that although the inflation has been slowing both in rural and urban areas of the country, there is a widening difference between the two as rural inflation is decelerating at a much slower pace. The difference between rural and urban inflation is most stark for fuel and transportation, followed by core and to a lesser extent food. Rural India has some structural disadvantages vis-a-vis urban India. Urban India is benefitting from lower global prices while rural India, partly because of its structural ailments, is not being able to partake with equal vigour
- Structural bottlenecks in rural India are harsher. Transport networks are also sparser and distribution channels are insufficient.
- World Bank report shows that between 2004-2009, 15% of India’s population, or 40% of the poor, moved above the poverty line (reducing poverty)
- India joined the MCAA (Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information) 54 countries are a part of itBulk taxpayer information will periodically be sent by the source country of income to the country of residence of the taxpayer This will help prevent international tax evasionAEOI (Automatic Exchange of Information) based on CRS (Common Reporting Standards), when fully implemented, would enable India to receive information from almost every country in the world including offshore financial centres and would be the key to prevent international tax evasion and avoidance and would be instrumental in getting information about assets of Indians held abroad including through entities in which Indians are beneficial owners This will help the Government to curb tax evasion and deal with the problem of **black money
- SEBI now allows urban local bodies to issue municipal bonds** Currently, these depend on financing from central grants and to some extent form state governments These bodies are critical for urban infrastructural development
- FMC and SEBI merger (see roles of both, what ministry they fall under etc.) Aim is to curb wild speculation and strengthen regulation of commodity forward market
- With regards to domestic MFs managing offshore funds, the government has now done away with the 20-25 rule Rule: A minimum of 20 investors in an MF, and no single investor is allowed to buy more than 25% stake in a singleOn an average, there are 7-8 plans under each scheme of a mutual fund. If^ scheme the norm is applicable at the plan level, it effectively would have meant a closure of the entire scheme at the cost of other plans which would be in compliance with the criteria Previously, the applicability used to be at the plan level
- In Indian investment jargon, what does ‘EEE’ stand for? EEE: Exempt, Exempt, Exempt 10. What is excise duty? Who usually bears the burden? Excise duty in India is a tax on products manufactured within India, for sale within India The manufacturer pays the burden Both the center and the state have excise duties
This will be a bank to finance the setting up of small and micro-units and thereby encourage entrepreneurship among SC/STs and OBCs (lending will be preferentially given to these classes) It will regulate and refinance all MFIs that lend to micro/ small business entities engaged in manufacturing, trading, and services activities Logic is to bridge the funding gap that affects the ‘middle’ – top corporates are funded by the banking system, bottom of the ladder is funded by MFIs, but the middle rung of micro and small enterprises suffers funding problems According to government estimates, only 4% of 5.77% crore small business units have access to institutional finance, leaving many to rely on informal lender The bank will regulate MFIs, and lend to ‘last-mile lenders’ that will provide financing to the businesses being targeted Ajay Shah calls this a ‘bad idea’: `Mudra bank' is an old style socialist initiative, which is inconsistent with all the other modern elements of financial sector reforms
15. Broadband and telephone penetration numbers Of the 1.25 billion people in India, only about 20% use internet (and about half of those use social media). About 900 million people have mobiles
- National Common Agricultural Market (APMC reform): Online National Agricultural Market more options to farmers for selling their produce has recently been approved by the Cabinet; will provide Currently, farmers are restricted to selling their produce at mandis or market committees that charge various taxes on producersState APMCs are seen as extortionist monopolistic places; even if trade is conducted outside an APMC and doesn’t utilize any APMC infrastructure, commission is still to be paid to the APMSCentre has been trying for a long time to convince the states to relax their APMC laws for over a decade, to no avail An online platform would be set up wherein farmers will be able to sell and buy fruits, vegetables and other produce from across the country An agency would be set up to oversee online trading and to ensure that transactions take place smoothlyIt will also focus on creating godowns and facilitating transportation of the farm produce after the online trade 17. GDR (GDRs and black money/ extent of RBI regulation) GDRs are financial instruments used by domestic companies to raise funds from abroad Usually denominated in foreign currency (thus, Indian companies raise funds in $ or £ etc. via GDRs)SEBI has come across quite a few cases where GDRs have been used for round-tripping of funds in the name of capital-raising of listed companies from abroad (an investor ‘invests’ his money in a tax-haven company; a
domestic company then raises funds from this tax-haven by issuing GDRs => investor’s money is now clean and back in India)
18. India-USA standoff about DCRs for solar cell production The case was filed by US along with the launch of both phases of Jawaharlal Nehru National Solar Mission (NSM), which aims at producing 20,000 mW of solar power by 2022The US was miffed at the Indian government urging developers of photovoltaic projects to procure solar cells and solar modules from domestic manufacturers onlyThe US alleged that Indian authorities were asked for mandatory usage of domestically produced solar power panels, which restricted the entry of American importsThe US, in its submission to the WTO, stated that India has violated GATT by not giving national treatment to imported products, and TRIMs, which prohibits the imposition of local content requirements
- UPSI: Unpublished Price Sensitive Information, used in insider trading legislation 20. Shanta Kumar Committee recommendations Note that the government didn’t eventually accept the recommendation regarding cutting the % of population covered under the act
- What is the ratio of government revenue to GDP in India? Gross Tax Revenue to GDP ratio: 10.7% (2012, World Bank estimate) Total revenue to GDP ratio: 12.8% 22. Change in GDP measurement method GDP calculation: factor cost v/s market price: India has recently moved towards calculating GDP at market prices, and these numbers show that the Indian economy had been doing much better in the last few yearsInternationally, GDP (MP) is the usual norm, so India has made a move in the right direction GDP (MP) = C +I +G +(X-M)Calculation at factor cost calculate all the above quantities at prices that the producers receive, while GDP at market prices calculates the above quantities at prices paid by the consumersBecause of the existence of indirect taxes and subsidies on products, there can exist a wedge between prices paid by the consumers and those received by the producers Thus, GDP (FC) = GDP (MP) – Indirect Taxes + Producer Subsidies
- Headline inflation- measure of total inflation within an economy, including commodities such as food and energy prices
Tax devolution Grants (cumulating all three kinds of grants- 2.81 3. non-plan, state plan support, and CCS support) 2.75^ 2. Thus, as we can see, the increase in tax devolution is not revenue neutral for the center tax devolution - that is,. This is inevitable, given that some CCSs like MGNREGA are the decline in grants-in-aid does not cover the increase in constitutionally mandated and need to be funded no matter what. II. Local governments: FFC has been quite generous in recommending a larger grant to local governments Local Governments (ULGs). The allocation to local governments is over (includes Panchayati Raj Institutions (PRIs) and Urban twice the amount recommended by the 13th FC, and for ULGs it is nearly three times relative to the 13th FC recommendations While there was a clamour by various state and local governments to allocate at least 5% of the divisible pool to local governments, the 14th FC has recommended a grant-in aid for local governments that is equal to an estimated 3% of the divisible pool Distribution of LG grants to the states based on 2 factors population (90% weight) and area (10%) : 2011 Grant to each state should be divided into two; one part strictly for gram panchayats, and the other only for municipalities; the division should be on the basis of urban and rural population figures for the states Grants for both these kinds of local bodies will be of two kinds grants (80-90%), and performance grants (10-20%) (rural-urban): basic The performance grant to urban local governments is to be given if they fulfil three conditions – have their accounts audited, improve own revenues, and publish service-level benchmarks The share of performance grants has been reduced from 35% in ThFC to 10% (urban) and 20% (rural) SFC to decide the sharing of grants within the state State and local governments should explore the possibility of issuing municipal bonds as a source of finance Better accounting and reporting procedures at the LG level
- Index of Industrial Production (IIP): A composite indicator that measures the short-term changes in the volume of production of a basket of industrial goods during a given period as compared to a base period In India, three major heads are manufacturing (about 80% weight), mining, and electricity (10% each)Manufacturing is sub-divided into production goods and user-based goods (subdivided into basic, capital, intermediate, and consumer)
- What is the ‘Peter Pan Syndrome’?
Technology adoption is lower when there is greater corruption, but higher when there is better enforcement and auditing Corruption and lower enforcement reduces adoption of productivity- enhancing technology among retailers inFirms tend to remain small to avoid transparency, a result of more^ India technology, and thus avoid the risk of getting slapped with higher taxes and more regulation
- What is the extent of India’s forex reserves? About 383 billion dollarsForex reserves = Foreign Currency Assets (FCAs) + SDRs + Reserve Tranche Positions (RTPs); FCAs are the biggest component Reserve Tranche Position: country’s quota (quota = SDR (payable in specified currencies) + own Difference between an IMF member currency) and IMF’s holdings of its currency; the country can draw upon this in times of need, so these count as forex 29. Differences between WPI and CPI There are only a few countries that use WPI to calculate inflation rates. Many nations have already shifted to using CPI WPI measures general level of price changes either at the level of the wholesaler or at the producer while CPI takes into account of consumer prices and the retail margins WPI is said to result an erroneous measure while CPI will describe actual cost of living and inflation rate more accurately WPI does not include the services sector at all; the services sector **produces about 60% of India’s GDP!
- New FTP:** Consolidation of all previous export incentive schemes under two: Merchandise Exports from India Scheme (MEIS), and Services Exports from India Scheme (SEIS) Under MEIS, the main sectors to be provided support include: processed, packaged village industry agricultural goods and food items, agricultural and SEIS will be available to ‘service providers located in India’ as against ‘Indian service providers’In a big relief for exporters, all scrips issued under MEIS and SEIS and the goods imported against these scrips will be fully transferable. This means that scrips issued under export from India schemes can now be used for payment of customs duty for import of goods, payment of excise duty on domestic procurement of inputs or goods, and payment of service tax The FTP will not be reviewed annually, but only after 2.5 years, thus guaranteeing stability to exporters Ambitiously aims to bump up exports to about $900 billion (from around $400 billion today, merchandise + services together) However, India’s exports in the last 11 months (till February) grew only by
farmers having Kisan Credit Card for a further period of up to six months post-harvest on the same rate as available to crop loan
37. Sugar woes in India Government sets high sugarcane prices (especialy the UP government) => high input prices for sugar mills Banks are not willing to advance working capital to private mills , fearing defaults and a rise in NPAs This has been accompanied with a glut in sugar production from Brazil As a result, arrears of Rs. 20,000 crores have piled up; government has provided subsidy for Rs. 6,000 crore, mill owners saying its nowehere near enough
- Brent is the leading global price benchmark for Atlantic basin crude oils It is used to price two thirds of the world's internationally traded crude oil suppliesBrent is also an acronym for the differing layers of an oil field: Broom, Rannoch, Etieve, Ness, and Tarbat Brent oil is considered crudes are considered sweet oils. This is generally based on the sulfur a more sour commodity than WTI , though both content of the underlying fuel, with 0.5% being a key benchmark. oil has a total sulfur level greater than half a percent, it is considered When sour , while a content less than 0.5% indicates that an oil is ‘sweet’. Brent has a sulfur level of about 0.37%Sour oil is more prevalent than its sweet counterpart 39. Capital Goods Policy Would help the industry in acquiring foreign technologies and also develop them within the country Imports continue to address 35 to 40 per cent of domestic demand with the proportion being significantly higher in "critical components" segment for each subsector Indian share in global exports in the capital goods sector is still low, ranging between 0.1 and 0.6 per cent, across various sub-sectors. In contrast, share of global exports for China ranges between 7.7 and 16. per cent depending on the sub sectorThe scheme was launched under the 'Make in India' initiative and it provides support to the industry to acquire technology, set up technology development centres in collaboration with institutes, and create common infrastructure for the capital goods industry Currently, capital goods are 12% of our manufacturing output. They can be increased to 20% by 2022 according to the vision of the policy A robust capital goods sector will fire up the manufacturing sector, as there is a direct correlation between them 40. Goldilocks economy: An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. Thus, sustains moderate economic
growth
41. Trans Pacific Partnership Among other things, the TPP seeks to lower establish a common framework for intellectual property, enforce trade barriers such as tariffs, standards for labour law and environmental law, and establish an investor- state dispute settlementTPP is considered by the United Statesmechanism government as the companion agreement to TTIP (the Transatlantic Trade and Investment Partnership), a broadly similar agreement between the United States and the Union European Brunei, Chile, NZ, Australia, Singapore, USA, Peru, Vietnam, Malaysia, Mexico, Canada, JapanThese countries together account for about 29% of global trade China is not a member of TPP For the US, a great attraction of the TPP is that it will enforce tighter intellectual-property rules on other countries. Such rules tend to have an uncertain impact on innovation while generating substantial rents for US patent and copyright holders 42. Transatlantic Trade and Investment Partnership The Transatlantic Trade and Investment Partnership ( TTIP ) is a proposed free trade agreement between the European Union and theEconomic relations between US and EU are quite free, but also tense, and^ United States there are frequent trade disputes between the two economies, many of which end up before theThere are a number of trade conflicts between the two powers, but both^ World Trade Organization depend on the other's economic market and disputes only affect 2% of total tradeA free trade area between the two would represent potentially the largest regional free-trade agreement in history, covering 46% of world GDP Topics under discussion include three broad areas: Market access; Specific regulation; and broader rules and principles and modes of co-operation With tariffs between the United States and the EU already low, 80 percent of the potential economic gains from the TTIP agreement depend on reducing the conflicts of duplication between EU and U.S. rules on those and other regulatory issues, ranging from food safety to automobile parts Perhaps most worrisome are the Investor-State Dispute Settlement (ISDS) provisions track, outside a country’s own legal system, that allows firms to sue governments for of the two agreements. These provisions establish a separate judicial apparent violations under trade treaties 43. Regional Comprehensive Economic Partnership (RCEP): Proposed FTA between the ten member states ASEAN ( TIMM-BC-PSLV : Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia,
rationalizing its approach towards them. A start has been made with the setting up of the ‘transparency mechanism’ , whereby member countries are bound to disclose details of their PTAs for the WTO’s scrutiny However, while a step in the right direction, this mechanism for now simply remains an information disclosure mechanism, and nothing else
47. WTO: TFA WTO negotiations have been happening in five working groups. Some important topics under negotiation are: market access, development Bali Package^ focused on addressing a small portion of the Dohaissues, WTO rules,^ and trade facilitation programme, principally, bureaucratic ‘red-tape’, by means of the ‘Trade ^ Facilitation Agreement’ The only binding target is reforming customs bureaucracies and formalities to facilitate trade No developed country undertook legal promises to reduce agricultural subsidies India agreed to be a part of this in 2013, but Modi government vetoed it, fearing loss of negotiation power in WTO and also more imports 48. WTO: Domestic Support- Amber, Blue, and Green Boxes ‘ Green box ’ roughly translate into a green ‘go’ signal, and amber could be considered a cautionary light, there is no red box. Instead, the WTO has invented a ‘ production-limiting programs blue box ’ which is used for what the organization considers To further complicate matters, you could consider yourself ticketed for running a red light if the amber box subsidies exceed pre-set reduction commitment levels. In addition, there are exemptions for many of the boxes, including those designed to help make developing countries more trade competitive Green box Policies not restricted by the trade agreement because they are considered trade distorting not These green box subsidies must be government-funded — not by charging consumers higher prices, and they tend to be programs that are not directed at particular products, and they must not involve price support. They may include direct income supports for farmers that are decoupled from current production levels and/or prices Amber box Agriculture's amber box is used for all domestic support measures considered to distort production and trade As a result, the trade agreement calls for 30 WTO members, including the United States, to commit to reducing their trade-distorting domestic supports that fall into the amber box U.S. agricultural subsidies listed as changing production and/or changing
the flow of trade include commodity-specific market price supports, direct payments and input subsidies
Blue box Any support payments that are not subject to the amber box reduction agreement because they are direct payments under a production limiting ^ program The blue box is an exemption from the general rule that all subsidies linked to production must be reduced or kept within defined minimal levels. It covers payments directly linked to acreage or animal numbers, but under schemes which also limit production by imposing production quotas or requiring farmers to set aside part of their land Opponents of the blue box want it eliminated because the payments are only partly decoupled from production, or they want an agreement in place to reduce the use of these subsidies. Others say the blue box is an important tool for supporting and reforming agriculture, and for achieving certain ‘non-trade' objectives, and argue that it should not be restricted as it distorts trade less than other types of support
49. WTO 'peace clause' Article 13 of the WTO: a WTO Member that are legal under the provisions of the Agreement on Domestic support measures and export subsidies of Agriculture cannot be challenged by other WTO Members on grounds of being illegal under the provisions ofThe Peace Clause expired in 2004. It is now possible, therefore,^ any^ another WTO agreement for developing countries and nations favoring free trade in agricultural goods, such as the settlement mechanism in order to challenge, in Cairns Group, to use the WTO dispute particular, U.S. and EU export subsidies on agricultural products 50. Name 5 different ‘types’ of patents Copyright, Geographic Indication, Trademark, Patent, Industrial Designs 51. Section 3(d) of the Indian Patents Act One unique provision of the Indian Patent Act is embodied in Section 3, clause (d) chemical and pharmaceutical entities unless the invention results in the. This provision prevents patenting of minor improvements in enhancement of known efficacy of that substance This is TRIPS compliant This provision is a safeguard for public health purposes and sets a higher threshold for granting pharmaceutical patents. (a US company) was denied a patent by the Indian Patent Office for its In January, Gilead Sciences drug Sofosbuvir that cures Hepatitis C, owing to application of Section ^ 3(d) Section 3(d) has been extremely contentious since its introduction in 2005. The transnational pharmaceutical industry regards it as establishing an unacceptably high barrier to patenting, as do many foreign
54. Apprentices act: Skill-building initiative F the Apprentice Act are stringent for them, one of the major reasonrom the point of view of employer they think that the rules laid down in according to them for not providing apprenticeship on a large basis is that the apprehension of prosecution penal provision of imprisonment of 6 months and others makes them It takes on the minimum age requirement of apprentice that is 14 years of age usually but the Bill increased the apprenticeship for the designated trades related to hazardous Industrial work to 18 years of age The central government will designate how many apprentice an employer will hold states did’t accept apprentices from other state but this bill has opened and this will be regulated by (Central Apprentice Council). Earlier the scope now for the people of other states too Now, either through agency or by coming together there can be multiple employers, who can provide apprenticeship, which is a great boost for the workers as well as the employers. The arrangement for the practical training must be there with the employers and the assent of advisor, which was necessary earlier, has been removed in the new bill passed. The syllabus of apprentice will be approved by central government through (CAC), the bill limits the provision for training in designated trade Penal provisions regarding imprisonment of the employer has been removed by this amendment privilege of deciding the holidays, leaves and the hours of work at the time. Employers have been provided with the of apprenticeship Going by the statistics projected by the government there were only 4.98% of apprentice of around only 2 lakhs seats were there but after the amendments around 24 lakhs apprentice seats will be created
- Labour, skills etc.: Unorganised Workers’ Social Security Act, 2008 National Commission for Enterprise in the unorganized sector report, 2005 Framework of revival and rehabilitation of MSMEs Skills ministry report on sector wise human resourcesNational Rural Livelihoods Mission (Aajeevika) Draft Skills Policy 56. Financial Sector: Committees
Nayak^ Comittee^ Governance in Subject^ Recommendations bank boards^ Government owns majority shares in PSBs, thus have the power to appoint its Board of Directors. This sometimes leads to sycophants being appointed, and thus bank governance suffers. Recommendations:
- Set up a ‘Bank Investment Company’ that will be the majority shareholder (on behalf of the government) in all PSBs
- This BIC will recommend appoints of board directors and CMDs
- Before BIC is approved by Parliament, set up the Bank Boards Bureau (BBB) Gopalkrishna Capacity building in banks and non-banks
Field-level details, such as recruitment of staff etc.
Urijit Patel Inflation * RBI’s job should be to focus on inflation * RBI should improve accountability by forming an MPC only )(via CPI)
Vishwanathan Bankruptcy^ * Government should focus on fiscal consolidation reform^ 1. Early recognition of financial distress in company and timely intervention by the government to rescue the organization 2. Liquidate un-viable company as soon as possible
- Allow secured creditors to apply for the rescue of the company (earlier it was filled after the company have been defaulted by 50 per cent of its outstanding debt) 4. Unsecured creditors representing 25 per cent of the debt be allowed to initiate rescue proceedings against the debtor company Parthasarathi Shome GARR guidelines General Anti-Avoidance Rules: People adopt various methods so that they can reduce their total tax liability. The methods adopted to reduce their tax liability can be broadly put into four categories: Tax Evasion, Tax avoidance, Tax Mitigation, and Tax Planning. GAAR provides to curb tax avoidance GAAR empowers the Revenue Authorities to deny the tax benefits of transactions or arrangements which do not have any commercial substance or consideration other than achieving the tax benefit. GAAR is intended to target tax evaders, especially Indian companies and investors trying to route investments through Mauritius or other tax havens in order to avoid taxes. GAAR provides discretionary powers to revenue authorities to tax impermissible avoidance arrangements. The arrangements as a whole or aim part may be disregarded and tax benefit denied GS Bajpai National Pension System Current NPS rules for the private sector allow a maximum exposure to equity of 50% and only through index funds that replicate either the BSE’s Sensex or the National Stock Exchange’s Nifty 50 index. Index funds mimic movements in the index to which they are linked. This form of investment is called passive investment. For government sector employees, equity exposure is limited to 15%. The report of the Bajpai committee recommends moving from this directed investment regime to one that leaves the choice of investment of pension assets to the subscriber
- pensioner has the provision of investing it in other options and Pension fund investments must be liberalized so that the not limited by one 2. It also mentions that the government fund must be handled and taken care of by private managers government investors solely and investor other than
